Why Kodak Stock Is Surging Today

MarketsMotley Fool

What happened

Shares of Kodak (NYSE: KODK) jumped on Friday following the imaging company's fourth-quarter report. The stock rocketed higher earlier this year when Kodak announced blockchain and cryptocurrency-related initiatives. Much of those gains have since disappeared, but an optimistic full-year outlook from the company seems to be helping the stock regain some lost ground. Shares of Kodak were up about 11.1% at 1:15 p.m. EDT.

Continue Reading Below

So what

Kodak reported fourth-quarter revenue of $414 million, down 4.2% year over year. Here's how each of its divisions fared:

Net income came in at $129 million, up from $10 million in the prior-year period. A tax benefit of $101 million due to the release of a valuation allowance was responsible for the bulk of the increase. Operational EBITDA on a constant currency basis was $15 million, down from $43 million in the prior-year period.

Looking forward, Kodak expects 2018 revenue between $1.5 billion and $1.6 billion, and operational EBITDA between $60 million and $70 million. Those numbers compare to $1.53 billion of revenue and $57 million of operational EBITDA in 2017.

Now what

Kodak made no mention of its blockchain or cryptocurrency initiatives in its earnings press release. The company's guidance called for revenue and operational EBITDA growth in 2018, which seems to be what's pushing up the stock on Friday. But with the stock price still elevated from levels prior to the company's cryptocurrency announcement, a crypto crash could derail the stock.

10 stocks we like better than Eastman KodakWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Eastman Kodak wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of March 5, 2018

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.